Canada’s Largest Pension Says Inflation Could Rise in Rebound
By Paula Sambo
Canada’s largest pension fund says policy measures across the globe to address the Covid-19 pandemic could fuel inflation after years of under-inflation while also spurring a rebound in employment and business investment.
“We’re keeping an eye on this because central banks have adjusted frameworks,” Mark Machin, chief executive officer of Canada Pension Plan Investment Board, said in an interview Tuesday.
“There is also the risk of a wall of money in savings accounts — $13 trillion in U.S. banks alone — moving, and that transfer can cause inflation.” Machin also sees the synchronized global economic upswing potentially creating further upward price pressure on commodities.
“Emerging markets are where you’re going to see a massive pickup in demand. And we’re very familiar with the infrastructure bottlenecks that exists and some economies’, especially in the Asian emerging markets, dependence on imports and commodities,” Machin said.
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